University Report: Digital Transformation in the Banking Industry

Verified

Added on  2022/08/11

|5
|583
|23
Report
AI Summary
This report examines the crucial digital transformation occurring in the banking industry, driven by the demand for 'anytime, anywhere banking.' It emphasizes the shift from traditional banking to digitalization, focusing on customer-centric approaches to meet evolving expectations. The report highlights the importance of understanding customer preferences and behaviors for effective digital transformation, aiming to improve customer financial health and engagement. Key areas of focus include leveraging data, reinventing customer journeys, building digital-driven organizations, and redefining operating models. The report also stresses the significance of an omni-channel approach for providing effective customer service through digital transformation, ultimately boosting Return on Equity (ROE) by enhancing revenue and reducing costs. The report references several sources that provide insights into the digital transformation in the banking industry.
Document Page
Integrated Business Experience
Student Name:
Student University:
0
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Digital transformation in the banking industry
In today’s time, there is a demand of “anytime anywhere banking” in the banking sector
which requires optimized, innovative, secure, robust and ready to meet tech-savvy and
empowered customers’ expectations. Digital transformation is kind of an essential change
from traditional banking to a world of digitalization where banks learn about satisfying and
interacting with customers in the banking industry (Rieker, 2018). Here, it is essential to
understand preferences, digital customer behaviour, likes and dislikes, and choices needed for
efficacious Digital Transformation for fulfilling stated and unstated aspirations and needs. It
is for making major changes for the companies to lead from product-centric to customer-
centric view (Ismail, 2019).
Source: (PWC, 2020).
Banks to pursue digital transformation is a critical path for boosting ROE (return on equity)
where it increases the top line revenue through better and new products and services along
with reducing and controlling the serving costs. It emphasis more on customer financial
health holistic view which make banks to engage with customers critically considering every
interaction, from customer and marketing acquisition among product setup, on-boarding, and
transactions and payments (Cuesta, et al., 2015).
1
Document Page
Source: (The Financial Brand, 2018).
Digital transformation in banks require to focus on leveraging the data power, reinventing the
journey of consumer, building an organisation to be digital driven and redefining the
operating model. It is for trustworthiness that is gained online, makes the new customers
acquisition easier and cheaper, offerings are personalised, and stays adaptive and innovative.
Lastly, the effective way to provide customer service through digital transformation is Omni-
Channel approach where all channels are tightly integrated by keeping them in the integration
center (Srinivas & Ross, 2018).
Source: (Kamra, 2014).
2
Document Page
References
Cuesta, C., Ruesta, M., Tuesta, D. A. & Urbiola, P., 2015. The digital transformation of the
banking industry. [Online]
Available at:
https://www.researchgate.net/publication/291357544_The_digital_transformation_of_the_ba
nking_industry
[Accessed 24 February 2020].
Ismail, N., 2019. Digital transformation in the financial industry: Driven out of necessity.
[Online]
Available at: https://www.information-age.com/digital-transformation-in-the-financial-
industry-123478551/
[Accessed 24 February 2020].
Kamra, S., 2014. DIGITAL TRANSFORMATION IN BANKING – THE FUTURE OF
BANKING. [Online]
Available at: https://www.happiestminds.com/whitepapers/digital-transformation-in-
banking.pdf
[Accessed 24 February 2020].
PWC, 2020. Desperately seeking digital. [Online]
Available at: https://www.pwc.com/us/en/industries/financial-services/library/pursuing-
digital-transformation-banking.html
[Accessed 24 February 2020].
Rieker, F., 2018. Embracing Digital Transformation: The Future Of Banking. [Online]
Available at: https://www.digitalistmag.com/customer-experience/2018/02/21/embracing-
digital-transformation-future-of-banking-05880240
[Accessed 24 February 2020].
Srinivas, V. & Ross, A., 2018. Accelerating digital transformation in banking. [Online]
Available at: https://www2.deloitte.com/us/en/insights/industry/financial-services/digital-
transformation-in-banking-global-customer-survey.html
[Accessed 24 February 2020].
3
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
The Financial Brand, 2018. The Four Pillars of Digital Transformation in Banking. [Online]
Available at: https://thefinancialbrand.com/71733/four-pillars-of-digital-transformation-
banking-strategy/
[Accessed 24 February 2020].
4
chevron_up_icon
1 out of 5
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]